India's retail inflation, measured by the All India Consumer Price Index (CPI), eased to 5.30 per cent in August from 5.59 per cent in July as prices of vegetables and cereals declined during the month from the year-ago period.
The retail inflation stood at 6.69 per cent during August 2020, data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed.
While inflation was at 5.28 per cent for rural areas in August 2021, it was at 5.32 per cent for urban areas. The inflation in food basket was at 3.11 per cent in August against 3.96 per cent in July.
While vegetable prices decreased 11.68 per cent in August 2021 from the year-ago month, prices of cereals and products declined 1.42 per cent. Sugar and confectionery also saw a marginal decline of 0.60 per cent.
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Meanwhile, oils and fats saw a 33 per cent increase in price, while price of eggs rose 16.33 per cent and that of meat and fish by 9.19 per cent. Pulses also witnessed a 8.81 per cent rise in price, followed by fruits with 6.69 per cent increase. While fuel and light had 12.95 per cent inflation, it was at 6.84 per cent for clothing and footwear and 3.90 per cent for housing.
In its monetary policy review last month, the Reserve Bank of India had kept the key interest rates and its stance unchanged, pledging to stay accommodative in the near future. The central bank focuses on retail inflation, while deciding its monetary policy.
The RBI has a tolerance level of 4 per cent (+-2 per cent) for inflation. It has projected the CPI inflation at 5.7 per cent during 2021-22 -- 5.9 per cent in the second quarter, 5.3 per cent in third quarter, and 5.8 per cent in the fourth quarter of the fiscal, with risks broadly balanced.
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